TaxTMI 
TaxTMI 
2014 (5) TMI 521
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.... 260A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal, Lucknow for the assessment year 2005-2006. The assessee caries on the business of purchase and sale of country liquor, Indian Made Foreign liquor and beer through 28 shops at various locations in Allahabad, Pratapgarh and Jaunpur districts. For the said assessment year, the assessee filed his return....
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....son for enhancing the income was rejecting the books of account and applying the provision of Section 145(3) for estimation of gross profit. The rejection of the books of account was on account of the fact that cash memo for individual sales was not issued and that a single cash memo was issued for each day. The Assessing Officer also noticed that the opening and closing stock of each shop was not....
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....t. On the other hand, the learned counsel for the assessee submitted that there was nothing wrong in the procedure followed by the assessee in issuing one cash memo each day for the petty sales and that no adverse inference could be drawn nor the books of account could be rejected on these grounds. Further, the net profit rate had increased in comparison to the earlier years and that the books of ....
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....issuing separate cash memo in respect of petty sales and in issuing a consolidated cash memo at the end of the day. The same view was reiterated by the Allahabad High Court in the case of Commissioner of Sales Tax Vs. Vishnbu Chandra Vipin Chandra, 50 STC 345, wherein the Court held that failure to issue cash memos by itself was insufficient to reject the books of account, where the books were oth....